Corporate travel savings: How to budget & save money on business travel

Key strategies to save money on business travel

Dive into the key tactics to better utilise your corporate travel budget and save big.
 

1. Book in advance

You know the saying, "The early bird gets the worm"? Well, in business travel, the early bird gets the best deals. Booking at the last minute is like gambling with your company's budget; trust us, the house always wins.

Nearly a quarter of business travellers (22%) overspend on travel simply because they wait too long to book. Office managers and assistants often get swamped with urgent tasks, leaving travel plans until the last minute when prices are sky-high.

Booking in advance avoids these high costs, unlocking opportunities for significant savings.

2. Use travel management companies (TMCs)

Missed connections, last-minute changes, and endless booking hassles can make you want to pull your hair out.

But imagine having a travel expert at your fingertips who takes the guesswork out of booking corporate flights, hotels, and transportation. This would leave you free to focus on the important stuff—like nailing that big presentation or closing a crucial deal.

TMCs can get you better rates on flights and hotels, provide comprehensive services, and ensure all travel is policy-compliant. Plus, they offer 24/7 support, so you've got someone to call when things go sideways at 3 AM.

While travel management company fees might seem like an extra expense, the savings and peace of mind they bring can far outweigh the costs.

3. Leverage a corporate travel platform

Why should business travel be an exception in the age of smartphones and smart everything? Leveraging the right tech, from booking tools to expense management software, can save you time, money, and headaches.

These tools streamline the entire process, from booking flights and hotels to managing and tracking expenses. They provide real-time data and analytics, ensure policy compliance, and offer seamless integrations with your existing systems.

• Take Savi, a global digital platform that lets you search and book flights with just a few clicks. Savi gives you insider access to exclusive rates and deals, ensuring you always get the best prices. Plus, Savi's comprehensive reporting tools help you track travel spend and maintain full policy compliance, making decision-making easier and more informed.

With the right technology, you can automate mundane tasks, reduce errors, and closely monitor expenses.

4. Negotiate corporate rates

The magic of negotiating corporate rates with airlines and hotels is getting VIP treatment every time you travel without the VIP price tag. You want to go beyond just scoring corporate travel discounts to forging relationships that bring long-term savings.

Start by analysing your travel data. Are your employees frequently flying to the same destinations or staying at the same hotel chains?

Use this data to your advantage. Approach airlines and hotels, and present the volume of business your company offers. Show them why giving you a discount is beneficial for both sides.

Building a strong relationship with your travel providers is critical. It's not just a one-time negotiation but an ongoing partnership. When you book consistently with the same airlines or hotels, they recognise your loyalty and might offer better rates or perks over time.

Regularly communicating and being transparent about your travel needs helps maintain these connections. Here are some tips for successful negotiations and potential savings:

• Highlight travel volume: Showcase the consistent business you bring to airlines and hotels to negotiate bulk rates.
• Utilise loyalty programmes: Use frequent flyer miles and hotel loyalty points for extra perks and discounts.
• Bundle services: Negotiate package deals that include flights, hotels, and car rentals for additional savings.
• Establish long-term partnerships: Build strong relationships with preferred travel providers to secure better rates over time.
• Be flexible: Offer flexibility in your travel plans to negotiate lower rates during off-peak times.
• Leverage a TMC: Ultimately, using the scale and buying power of a TMC is your biggest leverage in negotiating corporate rates.

Next time you're planning a business trip, channel your inner negotiator. By strategically negotiating corporate hotel rates, you can significantly reduce your accommodation expenses while ensuring your employees stay at comfortable and convenient locations.

5. Encourage flexible travel dates

Alright, let's talk flexibility. You know how life can throw you curveballs? Well, business travel is no different. Embracing flexibility in your travel plans can save your budget.

Say your company needs to book a flight for an important meeting, but you're not locked into a specific date. This is where the magic happens. Shifting your travel dates by just a day or two can unlock hidden savings waiting to be grabbed.

Flexible tickets allow you to change your travel dates, times, or even destinations without those pesky fees that airlines love to charge. This is a lifesaver for business travellers who often make last-minute changes. Are you all set for a Friday departure, but your client needs to reschedule? No worries! With a flexible ticket, you can adjust your plans at no extra cost.

6. Implement a comprehensive corporate travel policy

A corporate travel policy is the cornerstone of efficient corporate travel planning, ensuring all travel activities align with company policies and budgets. It's a comprehensive guide for your road warriors, covering everything from booking flights to handling expenses. A solid travel policy answers all the essential questions:

• How, where, and when to book: Sets clear guidelines for the booking process.
• Approved technology for travel management: Specifies the tools and platforms to use.
• Preferred suppliers: Names the go-to airlines, hotels, and car rentals.
• Approval processes: Details the steps for getting those tricky out-of-policy bookings greenlit.
• Trip extensions and personal travel: Outlines the dos and don'ts of combining business with pleasure.
• Expenses and reimbursements: Defines what's covered and how to get your money back.
• Travel insurance and emergency contacts: Ensures everyone knows what to do if things go south.

Creating a travel policy doesn't have to be a headache.

To make things easier, check out our handy travel policy template builder. This tool will guide you step-by-step, helping you craft a custom policy that fits your company perfectly. With clear guidelines, your team will travel smarter, spend wiser, and stay safer.

TRAVEL POLICY TEMPLATE

7. Monitor and analyse business travel expenses

Keeping a close eye on travel expenses is essential. Regular tracking and reviewing business travel costs can prevent budget overruns, identify cost-saving opportunities, and ensure that every pound spent is accounted for. It's about maintaining financial health and transparency, ultimately leading to more intelligent business decisions.

Why is this so important?

Without a clear view of your travel spend, you could be wasting money on unnecessary expenses or missing out on potential savings. By regularly monitoring travel expenses, you can spot trends, adjust policies, and make informed decisions that benefit your bottom line.

So, how can you do this effectively?

The key lies in using the right tools for expense tracking, and that’s where our travel platform, Savi, shines. Savi allows you to analyse your spend and save across the board—all from anywhere, on any device. Whether you're in the New Zealand, Australia or beyond, Savi is tailored to make life easier.

Savi's smart policy tool lets you set and forget, guiding your travellers on where and what they can spend. Your personalised company dashboard adapts to changing market conditions, saving time for you and your bookers. With real-time data and insights, reporting becomes a breeze.

8. Utilise loyalty programs

Who doesn't love perks? Loyalty programmes can be a goldmine for saving money and scoring sweet extras on business trips. Imagine earning miles for every dollar your company spends on flights.

Loyalty programmes aren't only about saving a few bucks. They're about enhancing the travel experience with perks that make business trips more comfortable and enjoyable. So, next time you book a flight, think about the rewards you could earn and start making those trips work harder for you.

9. Encourage the use of public transportation

Public transit isn't just for tourists with maps. For business travellers, the savings and benefits of using public or shared transport can be huge. Plus, it's a win for the planet.

First off, think about the cost benefits:

• Using public transit can significantly slash your expenses. No more sky-high gas prices or costly car rentals. It's a budget-friendly option perfect for businesses looking to trim costs.
• For those commuting up to 12 miles, you could save about over £1k per year by sharing rides. Go further, and the savings climb to more than £4k. When you add it all up, the combined savings for multiple employees can be substantial—up to £60k+.

Imagine a scenario where your team frequently travels around town for meetings. Instead of everyone driving separately and dealing with parking fees, they could car share using a ride-sharing service. This would cut down on travel expenses, encourage teamwork, and reduce the hassle of finding parking.

By encouraging public and shared transportation, your company can significantly cut costs while contributing to a greener planet. Now that's a win-win!

Let's make those savings happen!

So there you have it—your guide to slashing those business travel expenses while keeping your team happy and productive. Let's recap the main strategies we covered:

1. Book in advance to secure the best deals by planning ahead.
2. Use TMCs to get expert help, better rates, and 24/7 support.
3. Leverage technology using booking tools and expense management software to streamline the process.
4. Negotiate corporate rates by establishing relationships with airlines and hotels to get VIP treatment without VIP prices.
5. Encourage flexible travel dates to save money by being flexible with your travel.
6. Implement a comprehensive travel policy with clear guidelines to manage travel efficiently.
7. Track every pound spent to make informed decisions.
8. Utilise loyalty programmes by taking advantage of rewards and perks to enhance your travel experience.
9. Encourage the use of public transportation to cut costs and contribute to a greener planet.

Ready to slash those travel costs?

Proactive travel expense management isn't just about saving a few bucks here and there—it's about creating a sustainable travel programme that benefits your company in the long run. Implementing these strategies will optimise your travel budget and enhance your team's travel experience, boosting productivity and satisfaction.

Remember, every pound saved on travel is a pound that can be reinvested into growing your business. So, start implementing these strategies today, and watch your savings soar. Happy travels!